India’s Pharmaceutical Exports Achieve 99% Target Before FY25

India’s pharmaceutical sector has experienced significant growth in exports, with the target for FY25 nearly achieved by October of the previous year, according to government data.

The country’s drug formulations and surgical businesses have been key contributors to this growth, showing a robust performance. Industry experts suggest that at the current pace, India may surpass its export targets for the year.

India’s Strong Growth In Drug Formulations & Surgical Products

Data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) reveals that drug formulations and biologicals form the backbone of India’s pharmaceutical exports, accounting for 75% of the total export volume.

These segments have seen an impressive 11% growth, reflecting the global demand for India’s pharmaceutical products.

According to a senior pharmaceutical executive, “By October last year, 99% of the target was achieved. At this pace, we may even exceed the target by the end of FY25.”

Decline In Bulk Drug Values And Weak Vaccine Demand

While drug formulations have seen robust growth, the bulk drug segment has faced mixed results. Although there has been a volume increase in bulk drugs, their value has declined, largely due to lower prices for Active Pharmaceutical Ingredients (APIs) and intermediates imported from China.

Moreover, the demand for vaccines has weakened following the end of the COVID-19 pandemic, leading to a 9% decline in vaccine exports. On a positive note, exports of AYUSH and herbal products grew by 13%, reflecting increased quality standards as more Indian companies qualified for Good Manufacturing Practices (GMP) certification.

Significant Growth In The North American Market

The North American market, particularly the US, has shown remarkable growth. According to industry data, exports to North America have already reached $6.2 billion, with expectations that the total could reach $10 billion by March of this year.

This growth is even more impressive given the challenges posed by back orders and ongoing drug shortages. If these issues had not been present, experts estimate that growth could have been 25% instead of the 17% observed so far.

Mixed Performance In European Markets

In contrast to the booming North American market, growth in European exports has been relatively stagnant. The Netherlands and Belgium have seen minimal growth, while the UK has shown a 22% increase in exports. Germany, despite facing a recession, managed a 6% growth in pharmaceutical exports.

However, overall, the European market has demonstrated significant promise, with exports reaching $3.2 billion from April to October 2024, compared to $5.5 billion last year.

The African market, which saw pharmaceutical exports worth $4 billion last year, experienced a slight decline of 3%.

However, experts remain optimistic, suggesting that political stability could open up new opportunities, potentially pushing exports beyond $10 billion in the coming years.

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